By Claire Moraa

Latino-owned businesses grew 44% in the last five years

Latino entrepreneurs are creating businesses at over twice the rate of the general U.S. population

Latino-owned businesses have emerged as a vital force in the U.S. economy, driving growth and innovation while navigating systemic barriers. The revenue generated by these businesses has increased by 14.1% since 2021. And they’re flexing these muscles on their own. 70% of funding for Latino-owned businesses comes from personal savings. With Latino entrepreneurs starting businesses faster than any other demographic, their expansion fuels job creation, local revitalization, and national competitiveness.

Why This Matters: While Latino entrepreneurs are making strides, they remain underrepresented in comparison to their population size. Latino individuals make up 19.1% of the U.S. population but only about 7.9% of employer businesses are Latino‑owned. In contrast, white Americans, who represent 74% of the population, own 81.1% of employer businesses. Granted, the economic landscape is unforgiving with challenges, including inflation, labor shortages, and reduced government support. However, Latino-owned businesses are particularly vulnerable to these fluctuations, often facing greater financial strain than their non-Latino counterparts. For example, Latino-owned businesses were 1.3 times more likely to report significant sales losses during the pandemic than other businesses.

Their aggressive growth rate highlights an untapped economic potential especially in times where the unemployment rate is steadily rising. If these businesses were to grow at the same rate as the U.S. average, they could contribute an additional $1.4 trillion to the economy, approximately 5% more to the GDP. This growth would not only benefit Latino communities but also have a positive ripple effect on the broader economy.

What’s Next: While often overlooked in mainstream economic conversations, Latino-owned businesses are powering one of the most dynamic and resilient segments of the U.S. economy. With entrepreneurs launching ventures at more than twice the rate of the general population, unlocking their full potential isn’t just a matter of fairness, it’s essential for America’s continued economic growth.

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